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Venture Capital Deal Activity and Investment Inches Up in Early 2012

ALBUQUERQUE, NM; July 2, 2012 – The New Mexico Venture Capital Association (NMVCA) released the results of its quarterly survey of venture capital and private equity financing in New Mexico and associated year-end statistics, announcing that $14.7 million was invested into 5 New Mexico companies during the quarter.

“We continue to see a great deal of volatility in the local funding environment,” said Kim Sanchez Rael, NMVCA Board Member and General Partner of Flywheel Ventures. “In general, we are seeing both funding and activity increase since the 2009 lows, but with great variability from quarter to quarter.”

The investments in Q1 of 2012 included:

  Q1 2012
  Transactions Dollars ($M)
Seed 0 -
Series A 1 $0.3
Series B 2 $9.4
Series C+ 2 $5.0
Sub-Debt 0 -
Totals 5 $14.7

“Fundamentally seed and series A stage investing is led by capital that is based in close proximity to the investment opportunities. While our National Laboratories, Universities and entrepreneurial community represent a wealth of investment opportunity, I don’t expect to see much increase in seed and series A stage activity until more seed and series A stage capital is based in New Mexico,” said David Blivin, NMVCA Board Member and Managing Partner of Cottonwood Technology Fund. “The SIC and SBIC discontinued committing new capital over 3 years now. As a result, many of our best ideas leave the state to find capital elsewhere. These numbers confirm that we are not planting enough seeds to expect any significant increase in activity for the foreseeable future. Seed and series A should represent at least two-thirds of the activity to reflect a healthy venture/entrepreneurial community for New Mexico.”

The survey is conducted by the NMVCA among its members and other investing entities within New Mexico. Survey results are collected and aggregated by the law firm of Brownstein Hyatt Farber Schreck, LLP on behalf of the NMVCA and individual survey results remain strictly confidential.

About NMVCA

The New Mexico Venture Capital Association (NMVCA) was formed in 2004 to bring investment professionals together for the betterment of the state's private equity and venture capital community. The NMVCA facilitates intra-industry communication, provides a unified public voice, sponsors and promotes public policy initiatives, gathers statistics on New Mexico venture capital investments and educates potential institutional limited partners. Membership is open to professionally-managed private equity or venture capital firms with cumulative assets under management of at least $2.5 million and which have a demonstrated interest in investments in New Mexico. Current NMVCA members include: Cottonwood Technology Fund, Epic Ventures, Flywheel Ventures, Mesa Capital Partners, New Mexico Community Capital, New Mexico Mezzanine Partners, Sun Mountain Capital, Verge Fund, and vSpring Capital.

For additional information please contact Tom Stephenson, NMVCA Surveys Chairman at (505) 247- 1038 or at tstephenson@vergefund.com.